California Court of Appeal

Judgment for defendant holding that a promissory note was exempt from the constitutional usury prohibition under Civil Code section 1916.1 is affirmed, where: 1) even when the lender on a loan secured by a lien on real property is a corporation that is wholly owned by the arranging broker, the broker can still be found to have arranged the loan "for another" for purposes of section 1916.1; 2) in such a situation, the broker may be found to have arranged the loan "in expectation of compensation" even if the only compensation the broker will receive is the profit his wholly owned corporation reaps from the interest on the loan; and thus, 3) substantial evidence supports the trial court's finding that section 1916.1 applied here.

Appellate Information

• Decided 05/14/2013
• Published 05/14/2013

Judges

• ROBIE

Court

• California Court of Appeal

Counsel